Purchase recommendation 2 condominiums in a 3-family house

I did not include the incidental purchase costs because, in my understanding, they do not belong to the gross return.

But since you are spending the money, the costs must necessarily be taken into account. Otherwise, you are deceiving yourself if you pay 100k incidental costs but do not consider any interest. The correct calculation is when you consider all costs for an investment. That is why it is called gross.

But since you actually spend the money, the costs must be taken into account. Otherwise, you are lying to yourself if you pay 100k incidental costs but do not consider any interest. The correct calculation is when you consider all costs for an investment. That's why it's gross.

I once looked it up in the economic lexicon – the Gabler from my student days defines the gross yield as I calculated it, that is, without purchase incidental costs. That was 35 years ago. When asked at chatGPT, there is an additional reference to a "modified gross yield" that takes purchase incidental costs into account. Both calculation methods are still used; the trend according to chatGPT is toward the modified version you applied. No wonder, you deal with this daily. My knowledge is starting to become outdated. In both cases, the gross yield is only an initial estimate.